Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Answer requirements 1-3c please. I will thumbs up. True You Jeans Co. sells blue jeans wholesale to major retailers across the country. Each pair of

image text in transcribed

Answer requirements 1-3c please. I will thumbs up.

image text in transcribed
True You Jeans Co. sells blue jeans wholesale to major retailers across the country. Each pair of jeans has a selling price of $35 with $25 in variable costs of goods sold. The company has fixed manufacturing costs of $1, 175,000 and fixed marketing costs of $450,000. Sales commissions are paid to the wholesale sales reps at 10% of revenues. The company has an income tax rate of 20%. Read the requirements. Requirements - X Requirement 1. How many jeans must True You sell in order to break even? Select the formula labels, enter the amounts and calculate the breakeven number of pair of jeans. 1. How many jeans must True You sell in order to break even? Breakeven number of units 2. How many jeans must the company sell in order to reach: a. a target operating income of $420,000? b. a net income of $420,000? 3. How many jeans would True You have to sell to earn the net income in part 2b if (consider each requirement independently). a. The contribution margin per unit increases by 10% b. The selling price is increased to $37.50 C. The company outsources manufacturing to an overseas company increasing variable costs per unit by $2.00 and saving 70% of fixed manufacturing costs. Choose from any list or enter any number in the input fields and then click Check

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

2nd edition

134730372, 134730370, 978-0134730370

More Books

Students also viewed these Accounting questions

Question

The quality of the proposed ideas

Answered: 1 week ago

Question

The number of new ideas that emerge

Answered: 1 week ago